ORGANISATION:		Trafigura


DATE:   	August 2009

RISK GRADE:  High Risk

REQUIREMENT:

1.0	It is a requirement of the Code of Business Conduct, hereafter known as The Code (pg. 8 paragraph 13) that Trafigura employees are entitled to rely only on market information which is in the public domain for commercial purposes.

1.2	It is a requirement of The Code (pg. 8 paragraph 15) that in no circumstances whatsoever should an employee pay or offer any form of incentive in return for the provision of confidential information.

1.3	It is a requirement of The Code (pg. 12 paragraph 5) that no Trafigura employee may promise, offer or give any benefit or advantage to influence the behaviour of someone in government, a public official, someone capable of influencing a governmental or public official; or someone in business – whether they are a counterparty or intermediary - in order to obtain commercial advantages.


MONITORING CONDUCTED:

2.1	 The Compliance Department reviewed a sample of payments made through ‘Deal Costs’ from the period of November 2008 to May 2009 (7 months period);

2.2	The monitoring consisted of obtaining reports from Group Cost Management (hereafter know as GCM); reviewing the report; and questioning the nature of selected unusual transactions.

2.3	During this process, the Compliance Department came across a payment on the report entitled ‘Kazakhstan Expenses, cash transfer’ for US$3000. The invoice owner was Mr. Kanat Zhussupov.

2.4	The Compliance Department obtained receipts for the above selected transaction and ensured a follow up with Kanat Zhussupov and his manager.

COMPLIANCE FINDINGS:

3.0	Mr. Zhussupov, a Trafigura employee located in the region of Almaty in Kazakhstan, appears to have paid for confidential information relating to the National Oil Company of Kazakhstan, KMG (KasMunaiGas). This included contact details as well as confidential information relating to business completed between KMG and some of our competitors;

3.1	A payment of $3000 was received by the daughter of the Deputy Minister for Energy in Kazakhstan, who is an employee of KMG, apparently in exchange for the above information.

3.2	The Compliance Department spoke to GCM and were informed that as long as expenses were submitted, and remained within the employee’s monthly budget, they would not be challenged.